Robert Kiyosaki, the author of the best-selling series of “Rich Dad, Poor Dad” books has recently published a new book. This is a review of this latest book, “The Business of the 21st Century”.
He introduces the book:
“In The Business of the 21st Century, I’m going to show you why you need to build your own business, and exactly what kind of business. But this isn’t just about changing the type of business you’re working with; it’s also about changing you. I can show you how to find what you need to grow the perfect business for you, but for your business to grow, you will have to grow as well.”
The premise of this book is that you can STILL experience success in business. Despite the “tough times” that are present due to the worldwide economic crisis, fortunes will be made.
But the qualifier is that you must choose wisely.
It is a current reality that American workers are competing with workers in every country in the world. Many of these workers are HAPPY to do the same work for one-tenth (or less) of your current wage!
For this reason – and many more economic factors – we are living in an era of unprecedented unemployment levels. The rates are often correlated to “The Great Depression” but that is not a fair comparison.
While the percentages of people who are unemployed may be similar to Depression levels, we live in a completely different world. The level of education, technology, and mobility are a hundred times more advanced that in the 1930’s. And yet, tens of millions of Americans are unemployed – or “underemployed” and working in jobs far below their education and experience. This is especially true of “Baby Boomers” who have very slim chances of matching their old jobs.
Robert Kiyosaki touches on this realityin his description of “The Cash Flow Quadrant”. He says ALL income earners fall into one of four categories, or four corners of “The Cash Flow Quadrant”.
The four divisions are:
Employee: These people are looking for a good job with benefits. They are also 100% at the mercy of their employers, who are at the mercy of global competition. The goal of every employee is to have some money left after paying all their expenses.
Self-Employed: These are small business owners and sole proprietors, characterized by “Mom and Pop” stores and service providers. Unfortunately, many displaced workers have tried to open a business only to find that they merely “bought” themselves a 100-hour per week job. They also quickly learn that when they stop working they stop earning.
Business owner: These people understand that maximum earning potential is only attainable by leveraging the efforts of many, many more. A business builder creates a “machine” that operates around the clock, without their direct input in every stage of the process.
One of the HUGE differences in the wealth creation potential of a business owner is the legal and ethical ability to record expenses on a “pre-tax” basis.
And the fourth quadrant is the Investor. The Investor has achieved sufficient wealth so that their money now “works” for them! This is the goal that all people strive for, if only to reach the point where they can someday “retire”. Unfortunately, today the vast majority of Americans can never retire without a drastic reduction in their lifestyle.
According to Kiyosaki, Business owners and Investors represent less than 20% of the productive population. More than 80% of workers are not free to direct their own schedules – they are tied to their job or their store.
Robert Kiyosaki advises that EVERYONE should have the goal of being a self-employed business owner. He then writes WHY network marketing is “The Business of the 21st Century” for these reasons:
1. Network marketing is the easiest business model to transition from employee to business owner. You can also start part-time and transition to full-time. In addition, the cost of entry is very low – usually as little as a few hundred dollars.
2. Network marketing is a system that provides leaders who have a vested interest in YOUR success. These leaders – and the available marketing systems – ALSO provide extensive training to make you successful. In most cases, these training resources are available for FREE or at a very low cost. Note: it is ALWAYS less expensive to purchase the accumulated wisdom of successful people than to repeat their mistakes!
3. Network marketing provides the most effective means of promoting a product – that is, by using personal relationships to provide recommendations. (Today these recommendations extend online to thousands of “friends and followers”)
4. Network marketing leverages the efforts of dozens, hundreds, and even thousands of others. All of these people are working on THEIR business but also are creating a stream of residual income for you.
5. Network marketing provides almost unlimited opportunities to increase your knowledge and develop your personal skills – which makes you more valuable as a leader and resource to others. It also places you in the circle of influence of other leaders who are in the top 1% of income earners and opens up additional opportunities.
6. Network marketing is a scalable enterprise. There are many avenues open to successful network marketers. All of these can be expanded to increase the business, across the country or around the world.
7. Network marketing creates not only wealth creation but an asset. The business you build is legacy. You can create a business that will outlive you.
8. Networking marketing is one business that creates residual income. You also create multiple streams of income – unlike more than 80% of workers who have one paycheck and are helpless when that ends. Residual income means you earn even when you are not “working” and you can hardly turn it off! For these reasons, network marketing truly has no income ceiling!
9. Network marketing has no education prerequisites. You can even participate if you are over-educated! There are no barriers based on race, age, background, or any other factor that may make you “unemployable” in a typical job search. Today, hundreds line up for one job opening as a janitor. In network marketing you can bypass every hurdle and start immediately.
10. Network marketing is perfectly positioned to take advantage of modern technologies. While the industry has been successful for decades using only face-to-face sales methods, these new technologies expand the opportunities exponentially. In particular, the growth of social networking gives you access to thousands, even millions of people. It is also a fact that millions are looking for ways to increase their income at any one moment.
For ALL these reasons, Robert Kiyosaki concludes that network marketing IS “The Business of the 21st Century”.